Nylon Agreement Terms

Press, Volume CIV, Issue 30793, 3 July 1965, Page 16

Nylon Agreement Terms

(N.Z. Press Association)

WELLINGTON, July 2. A file of letters between the Government and two nylon manufacturers, Fibremakers (N.Z.), Ltd., and Von Kohorn, was tabled in Parliament today by the Minister of Industries and Commerce (Mr Marshall). The agreement with Fibremakers provides that prices of the company’s products will not be higher than the prices of comparable imported products as at the end of May, 1963, without Government negotiation. The agreement also says that as long as import con-

trol is retained, the Government will take into account the output of the industry and will not grant import licences for the importation of competitive yarns and fibres, if they will prevent the sale on the New Zealand market of locally-produced yarns and fibres. There is a letter setting out heads of agreement with Fibremakers. It is believed this was at the request of Fibremakers. There is no heads of agreement with Von Kohorn. It is thought they did not ask for one. To Fibremakers, the Government said the company would be free at all times to apply to the Tariff and Development Board for protective tariff, and if it were recommended, the Government would provide such a tariff. To Von Kohorn, the

Government said it would have to include in any prospectus a statement to the effect that no protection by way of tariff or import licensing would be sought by the company. The letter to Von Kohorn was sent on May 22, 1963. and that to Fibremakers on June 26, 1963.